Three cars did a quick-start: Pole-position-man Villeneuve, Verstappen and again Irvine (like in Austria), but only the Jaguar could use this advantage until the casino-corner, where he was overtaken by Mika Salo. The Ferrari held the leadership until the second corner in lap 2, close followed by Villeneuve during the whole first lap. Behind them there was dense traffic with changing success for the one or other driver. At the Tabac-Corner Hill risked too much and crashed into the back of Hakkinens car, so he dropped out there, laying on third place. A few stopps later, Verstappen had to take out his car after a collision at the swimming pool complex. Salo, Villeneuve, Hakkinen, Frentzen and Badoer visited the pits at the end of their 1. lap.

On the second lap, Heidfeld took the best line through the Loews-corner and sat himself on the top of the field in front of Salo. With a carefull first lap, all three cars of Williams reached between second and seventh places at this time in the race, shortly Berger even had rank 1, Villeneuve and Hakkinen completed the first six places. Berger then in the close figth with Salo for second place had to drive over a body-part laying around from an earlier collision in the 8th corner and dropped out. While Heidfeld and Salo began their 3rd lap without going to pit, Irvine collided with Hakkinen in the last corner which resulted with a drop-out for both cars. Only seven cars were left at the start of the 3rd lap. Both leftovers of Jaguar, Frentzen and Schumacher went to pit almost at the same time. Badoer decided to go into the third lap with only two tire-points left.

The tires of the leader Heidfeld were not that good anymore and so Salo catched up with him at the Tobaco-corner while Williams lost his last car on a hazard at the Loews-corner. Salo overstressed his tires in the last corner whith an "everything but a 12"-manouvre (of course it was a die-roll of 12 then) in fourth gear and spun. So the way for a victory for Heidfeld was free. Jaguar saw it's chance to close up with the Ferrari in 1st gear and pushed, while they always had to have a look on Frentzen who came along very fast. The Ferrari could only finish the 9th corner in second gear behind the green cars (no brakes anymore) and therefore he missed the last corner, while Villeneuve and Zanardi reached it easily. Villeneuve overtook Salo on the last few meters before the finish-line and finished on second place, Zanardi, a little slower, came in on fourth. The last point for sixth place went to Luca Badoer, who could not reach the finish-line anymore, because he dropped out in the 9th corner on a dangerous space.

In the third year in a row, Duke Rainer of Monaco congratulated a Tyrell-pilot for the victory in Monte Carlo. Like last year, second place went to a driver of Sidney Jumpwalkers Team and so only third place was left for Ferrari.